What’s New in 2021

December, 2020

Each year, Cast & Crew prepares a highlight of key changes. While our “What’s New” does not provide legal advice, it does seek to alert our clients to the myriad issues and challenges that arise in our industry.

New Minimum Wage Increase

State 2021 Rate (per hour) Effective Date
Alabama $7.25
Alaska $10.34 Jan. 1, 2021
Arizona $12.15 Jan 1., 2021
Arkansas $11.00 Jan. 1, 2021
California – Small Employers
(25 or fewer employees)
$13.00 Jan. 1, 2021
California – Large Employers
(26 or more employees)
$14.00 Jan. 1, 2021
Colorado $12.32 Jan. 1, 2021
Connecticut $13.00 Aug. 1, 2021
Delaware $10.25 Oct. 1, 2021
Florida $8.65 Jan. 1, 2021
Florida $10.00 Sept. 30, 2021
Georgia $7.25
Hawaii $10.10
Idaho $7.25
Illinois $11.00 Jan. 1, 2021
Indiana $7.25
Iowa $7.25
Kansas $7.25
Kentucky $7.25
Louisiana $7.25
Maine $12.15 Jan. 1, 2021
Maryland – 14 or fewer employees $11.60 Jan. 1, 2021
Maryland – 15 or more employees $11.75 Jan. 1, 2021
Massachusetts $13.50 Jan. 1, 2021
Michigan $9.65
Minnesota – Small Employers (100 or fewer employees) $8.21 Jan. 1, 2021
Minnesota – Large Employers (101 or more employees) $10.08 Jan. 1, 2021
Mississippi $7.25
Missouri $10.30 Jan. 1, 2021
Montana $8.75 Jan. 1, 2021
Nebraska $9.00 Jan. 1, 2016
Nevada – employers who do provide employee benefits $8.75 July 1, 2021
Nevada – employers who do not provide employee benefits $9.75 July 1, 2021
New Jersey $12.00 Jan. 1, 2021
New Jersey – Small Employers (fewer than 6 Employees) and seasonal employees $11.10 Jan. 1, 2021
New Hampshire $7.25
New Mexico $10.50 Jan. 1, 2021
New York $12.50 Dec. 31, 2020
North Carolina $7.25
North Dakota $7.25
Ohio $8.80 Jan. 1, 2021
Oklahoma $7.25
Oregon (general) $12.00 July 1, 2021
Oregon (urban) $12.75 July 1, 2021
Pennsylvania $7.25
Rhode Island $11.50 Oct. 1, 2020
South Carolina $7.25
South Dakota $9.45 Jan. 1, 2021
Tennessee $7.25
Texas $7.25
Utah $7.25
Vermont $11.75 Jan. 1, 2021
Virginia $9.50 May 1, 2021
Washington $13.69 Jan. 1, 2021
West Virginia $8.75
Wisconsin $7.25
Wyoming $7.25

 

Local Minimum Wage Increases

Locality 2021 rate (per hour) Effective Date
Flagstaff, AZ $15.00 Jan. 1, 2021
Alameda, CA $15.00 July 1, 2020
Belmont, CA $15.90 Jan. 1, 2021
Berkeley, CA $16.07 July 1, 2020
Burlingame, CA $15.00 Jan. 1, 2021
Cupertino, CA $15.65 Jan. 1, 2021
Daly City $15.00 Jan. 1, 2021
El Cerrito, CA $15.61 Jan. 1, 2021
Emeryville – Small Employers
(55 or fewer employees)
16.84 July 1, 2020
Emeryville – Large Employers
(56 or more employees)
16.84 July 1, 2020

IRS issues standard mileage rates for 2021 

IR-2020-279, Dec. 22, 2020

WASHINGTON — The Internal Revenue Service today issued the 2021 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.

Beginning on Jan. 1, 2021, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be:

  • 56 cents per mile driven for business use, down 1.5 cents from the rate for 2020
  • 16 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, down 1 cent from the rate for 2020, and
  • 14 cents per mile driven in service of charitable organizations, the rate is set by statute and remains unchanged from 2020.

The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

Social Security Tax limits for 2021

Starting Jan. 1, 2021, the maximum earnings subject to the Social Security payroll tax will increase by $5,100 to $142,800—up from the $137,700 maximum for 2020, the Social Security Administration (SSA) announced Oct. 13. The SSA also posted a fact sheet summarizing the 2021 changes.

The taxable wage cap is subject to an automatic cost-of-living adjustment (COLA) each year based on increases in the national average wage index, calculated annually by the SSA.

Payroll Taxes: Cap on Maximum Earnings
Type of Payroll Tax 2021 Maximum Earnings 2020 Maximum Earnings
Social Security $142,800 $137,700
Medicare No limit No limit
Source: Social Security Administration.

401K limits for 2021

There is no change in the 2021 401k limits. They remain the same from 2020

  • The 401(k) contribution limit is unchanged at $19,500
  • The 401(k) catch-up contribution limit is $6,500 for those age50 and older
  • The limit for employer and employee contributions will be $58,000

IRS Issues new Federal W-4 for 2021

The 2021 Form W-4 has been issued by the IRS.  Please see the link below for the new 2021 version. Please note, all new hires from 1/1/2021 should be hired with the 2021 version of the W-4. Older versions will be considered an incomplete W-4 and defaulted to the highest tax rate.

https://www.irs.gov/pub/irs-prior/fw4–2021.pdf

Georgia Loan Out Back-Up Withholding rate for 2021 

GA Loan-out rate decreased to 5.75% for 2021 from the current 6% in 2020.

New Mexico Loan Out withholding rate for 2021

The New Loan Out state back up withhold will be increasing in 2021 to 5.9%

PHBP – Producer’s Health Benefit Plan for Commercial Production Employees

Minimum contribution amount increased to $45.00 per day

For further information, please contact Compliance@castandcrew.com.

The proceeding information is provided for informational purposes only, should not be construed as or relied upon as legal advice and is subject to change without notice. If you have questions concerning particular situations, specific payroll administration or labor relations issues, please contact your counsel.

 

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